Authority: Discretionary Inclusion.

A. To accomplish savings estimated at $30,000,000 the first year and $30,000,000 the second year, the Department of Planning and Budget is hereby authorized to transfer to this Item from the general fund appropriation for state aid to local government programs or receive reimbursement payments in a manner that provides localities flexibility in how such savings are implemented.

B. The Director of the Department of Planning and Budget shall provide the chief operating officer of each city and county in the Commonwealth a list of certain state aid to local government programs along with an estimate of the general fund amount for each program that each county and city could expect to receive from the state during each year of the biennium. The total amount listed for these programs will serve as the basis for calculating the savings apportioned to each city and county for this Item. The pro rata savings apportionment will be equal to the percentage of the aggregate general fund amount for all of these state aid programs in each city and county, with such savings totaling $30,000,000 the first year and $30,000,000 the second year.

C. Each city and county in the Commonwealth shall have flexibility in determining how it will implement the savings apportioned to it. Each city and county can choose to (i) take the total savings out of one program included on the list provided by the Department of Planning and Budget, (ii) reduce multiple state aid programs on a proportional basis or by a specified percentage reduction, or (iii) reimburse the Commonwealth in aggregate for its share of the savings, thereby keeping the state aid programs at an unreduced level. Each locality may also use option (iii) in combination with option (i) or (ii). The governing body of each city and county shall make its selection and certify its choice to the Director, Department of Planning and Budget, within 30 days of receipt of the savings amount apportioned to it from the Department of Planning and Budget. Within 10 days of receipt, the Director of the Department of Planning and Budget shall review such certification for accuracy to ascertain that the required savings amount apportioned to the city or county is obtainable using the selected option(s) submitted on the certification. Unless the Director of the Department of Planning and Budget finds a certification to include savings that are not obtainable or sustainable, the certification shall be approved and implemented without further delay. In the event that a city or county has not submitted or obtained an approved certification by January 1, 2015, the Director of the Department of Planning and Budget is hereby authorized to withhold an amount equivalent to the savings amount apportioned to the affected city or county from the aid to local government programs that the Director determines are most discretionary and represent general purpose aid to the local government in question before he begins to withhold any funds from categorical grants serving a particular functional area or public service.

D. The savings in state aid to local government programs identified by each city or county on its approved certification (or by the Director of the Department of Planning and Budget in absence of an approved certification) shall be transferred from the other items where such amounts are appropriated in this act to offset the reversion amount listed in this Item. Payments from local governments electing to use option (iii) in Paragraph C. shall be deposited to a suspense account which shall be administered pursuant to § 3-1.03 Part 3.